A worker inspected a finished vehicle on the production line of the electric car manufacturer Zeekr in Ningbo, China on May 29, 2025.
Kevin Frayer | Getty Images News | Getty Images
China’s industrial profits fell by 9.1% from May a year ago, with the latest signs that Beijing’s stimulus efforts lack in improving corporate profitability.
As of one year ago, cumulative profits of major industrial companies fell by 1.1% in May this year. Data display.
Citibank upgraded China’s 2025 growth forecast from 4.7% to 5% earlier this week, in line with Beijing’s official target, driven by strong growth in the first half of the year and expectations for elastic exports.
Despite unstable U.S. tariff policies, China’s exports continue this year due to surges in transportation to Southeast Asia and EU countries. In May, the country’s exports increased by 4.8% from a year ago, even as the United States encountered goods down 34.5% from the same period last year.
Citi expects overall exports to rise by 2.3%, while freight shipments are estimated to fall by 10%.
U.S. President Donald Trump said on Wednesday that the deal with China has provided no other details. White House officials later clarified: “The government and China have agreed to have more knowledge about the framework for implementing the Geneva agreement.”
The Geneva agreement hinders China’s curb for exports of key minerals and the U.S. restrictions on technology and Chinese student visas.
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